HSBC Insurance Holdings Ltd., a subsidiary of HSBC Holdings PLC, announced Monday that it had agreed to buy an additional 9.91% of the issued share capital of Ping An Insurance Co. of China.
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The deal, worth $1.04 billion, would increase HSBC's stake in Ping An to 19.9% of its issued share capital.
The shares are to be bought from Goldman Sachs Group Inc. and MSCP/PA Holding Ltd., an entity controlled by funds managed by the private equity business of Morgan Stanley. The two U.S. investment banks bought the Ping An shares in 1994.
By terms of the agreements, more than 613 million Ping An shares are to be bought by HSBC at $1.69 a share, a premium of 9% to the price at which the stock closed on the Hong Kong exchange May 6.
